Eurostat

Eurostat/ OECD Manuals on- Business demography (2007)- Innovation (Oslo Manual 2018)

Carsten Olsson

European Businesses, Eurostat G2

European Commission

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Entrepreneurship and Innovation

Creative destruction• Entrepreneurs […] seek to generate value through creation or

expansion of economic activity by identifying and exploiting new products, processes or markets

• An innovation is a new or improved product or process that differs significantly from the previous product or process

Impact

• poverty reduction and social inclusion

• higher productivity, economic growth

Measurement through

• Business Demography

• Innovation survey

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Business demography (BD)What does it measure?

• Number of active enterprises in the reference year (t)

• Active = had turnover or employees or investment

• Birth of enterprises

• Survivals (followed up to five years after birth)

• Death of enterprises

• Number of persons employed and/or employees (enterprise-event)

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Business demography (BD)

Why?

• Births, deaths, survival rates, etc. • insight into the dynamic nature of the business

environment

• Breakdowns (country, region, NACE/ISIC, size, legal form)• Pinpoint mature or volatile business ‘segments’

• Important for policy makers• understanding economic growth (and productivity)• as information for tackling social demographic issues

• Example: EU Cohesion Policy (regional policies)

Support innovative and high growth firms; increase competitiveness, develop products, find new markets and create new jobs;

Ongoing discussion to use result indicators (e.g. survival rates) as policy indicator

Employment share of enterprise births and deaths (2016), geographical distribution

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Typology of business events(Eurostat/OECD 2007)

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• Top indicators• Birth rate, Death rate, Survival rate

• Other indicators

• High growth enterprises (HGE)Enterprises with more than (20%) 10% annualised growth in number of employees over 3 years (>=10 employees); Extend methodology to micro-enterprises

• Gazelles Subset of high-growth enterprises

All enterprises up to 5 years old with more than (20%) 10% annualised growthover three years

• On the drawing board

• Sustainable growth of HGE

• Scale-ups, unicorns

• Dependency (belonging to group or not, strong indicator of turnover)

Business Demography Indicators

How sustainable is high growth?

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Business demography (BD)

Statistical infrastructure needed?

• Business registers

• Business Registers Recommendations Manual (Eurostat, 2010)

• Guidelines on Statistical Business Registers (UNECE, 2015)

• If no business register

• CensusExpensive to carry out frequently

• SurveysSample selection and frame?

Cannot catch enterprise deaths

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Business Demography

Reference Manual(s)

Eurostat − OECD

Manual on Business Demography Statistics (2007)

UNECE

Guidelines on the use of statistical business registers for business demography and entrepreneurship statistics (2018)

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Creative destruction

Innovation

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Innovation

• Policy interest

- What drives innovation in businesses ?

- What hampers innovation in businesses ?

- What features set innovative enterprises

apart from non-innovative enterprises ?

- How do innovative enterprises develop ?

- How can governments support ?

• Types of innovation (with subtypes)

• Product innovation

• Business process innovation

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Mandatory variables under EU legislation

• Enterprise identification and basic information on the enterprise

• Products• Incidence of new or improved goods or services

• Goods or services new to market/firm ?

• Turnover from goods/services new to market/firm

• Who developed new or improved goods or services ?

• Processes• New or improved business processes

• Who developed new or improved business processes ?

• Innovation activity• Innovation expenditure

• Innovation co-operation

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• Enterprise strategies

• Customisation and co-creation

• Intellectual property rights (issuing and usage)

• Knowledge inflows and Management methods

• Funding and financial support

• Impact of external factors on innovation

• Further information on the enterprise and enterprise group

Optional variables

• Reduced subjectivity (Self-assessment (don’t ask):

Did you introduce an innovation to the market?)

• Better information on innovation activities (e.g.

who developed? in co-operation with whom? expenditure?

[optional: knowledge flows, funding & financial support, …])

• Reduced bias (remove opt out questions at beginning)

• Improved balance (amount of) questions for

‘innovative’ and ‘not innovative’ enterprises• [Why are non-innovative enterprises not

innovating?]

Improving EU innovation survey (CIS)(based on 2018 Eurostat-OECD Oslo Manual)

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Innovation

Statistical infrastructure needed?

Need random (stratified) sample selection within well-defined frame

• Business registers as basis for survey frame

• Business Registers Recommendations Manual (Eurostat, 2010)

• Guidelines on Statistical Business Registers (UNECE, 2015)

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Innovation surveys

Reference Manual Template questionnaire

Eurostat − OECD

Oslo Manual (2018)

CIS - EU Innovation Survey

Eurostat website (questionnaire, guidance, indicators)

Eurostat

Thank you for your attention